Gold Hawk Resources Inc.
TSX VENTURE : CGK

Gold Hawk Resources Inc.

October 01, 2007 11:29 ET

Gold Hawk Achieves Commercial Production at Coricancha

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 1, 2007) - Gold Hawk Resources Inc. ("Gold Hawk" or the "Company") (TSX VENTURE:CGK) is pleased to announce that it has achieved Commercial Production at its Coricancha Mine in Peru effective October 1, 2007.

Commercial Production, based on attaining 66% (400 tonnes per day "tpd") of rated mill capacity (600 tpd) in any 18 days within a 30 day period, was achieved during the 30 day period ending September 25th, 2007. Mill throughput in the 30 day period totaled 11,790 tonnes, representing an average capacity utilization of 65%. During the five day period ended September 30, 2007, the mill operated at an average capacity utilization of 86%. The Company expects to attain the designed capacity of 600 tpd during the fourth quarter of 2007.

Commercial Production, for accounting purposes, will be effective October 1, 2007. Attaining commercial production is a major milestone for the Company as the mine's sales and operating costs will now be reported on Gold Hawk's income statement. Prior to October 1, 2007, sales and operating costs had been capitalized for financial reporting purposes.

While a delay in the delivery of new mining equipment prevented attaining commercial production at an earlier date, management is very pleased with the progress in the operating performance of the mine.

Since the start of operations in April 2007, over 42,000 tonnes of ore have been processed and over 1,000 tonnes of zinc and lead concentrate have been produced. Also, 729 ounces of gold and 4,923 ounces of silver in dore were produced in the same period.

"Now that the Coricancha mine has entered its commercial production phase, Gold Hawk takes a major step forward in becoming a company delivering significant earnings and cash flow," said Kevin Drover, President and CEO of Gold Hawk. "The Company has achieved this significant milestone in a relatively short time frame since the acquisition of the mine in March of 2006. We now look forward to optimizing output from the mine and developing on its excellent exploration potential."

About Gold Hawk

Gold Hawk is a precious and base metals producer with its primary asset, the wholly owned Coricancha Mine, in Peru, now in commercial production. The company purchased the Coricancha Mine in March of 2006 and since then has permitted, refurbished the mine and concentrator and is now ramping up production to design levels. The company, through its subsidiary, CMSJ Peru, has approximately 600 employees in Peru. The Company also has exploration properties in Peru and Canada (Quebec). Its head office is in Vancouver, British Columbia.

This press release includes "forward looking statements", within the meaning of applicable securities legislation, which are based on the opinions and estimates of management and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Such risks and uncertainties include, but are not limited to, risks associated with the mining industry (including operational risks in exploration development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainties involved in the discovery and delineation of mineral deposits, resources; the uncertainty of resource estimates and the ability to economically exploit resources; the uncertainty of estimates and projections in relation to production, costs and expenses; the uncertainty surrounding the ability of Gold Hawk to obtain all permits, consents or authorizations required for its operations and activities; and health and safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the ability of Gold Hawk to fund the capital and operating expenses necessary to achieve the business objectives of Gold Hawk, the uncertainty associated with commercial negotiations and negotiating with foreign governments and risks associated with international business activities, as well as those risks described in public disclosure documents filed by Gold Hawk. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in securities of Gold Hawk should not place undue reliance on these forward-looking statements.

Readers are cautioned that the foregoing lists of risks, uncertainties and other factors are not exhaustive. The forward-looking statements contained in this press release are made as of the date hereof and Gold Hawk undertakes no obligation to update publicly or revise any forward-looking statements contained in this press release or in any other documents filed with Canadian securities regulatory authorities, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Gold Hawk Resources Inc.
    Mr. Gordon F. Bub
    Executive Chairman
    (604) 689-9261
    or
    Gold Hawk Resources Inc.
    Mr. Kevin Drover
    President and CEO
    (604) 689 9296
    Website: www.goldhawkresources.com